US Gold and Copper Fall on Euro Downgrade Worries

U.S. gold and copper futures fell Tuesday as economic worries about credit downgrades in Europe offset optimism on a Greek rescue package.

FUNDAMENTALS

* Gold futures fell as a brief recovery in the euro ran out of steam and Moody's warned that the agency may cut its triple-A credit ratings of France, Britain and Austria.

* An official from the Shanghai Gold Exchange said it planned to launch over-the-counter gold trading and was in talks with the China Foreign Exchange Trade System to conduct these trades via the interbank market.

* Copper futures dropped after the euro trimmed gains against the dollar on waning enthusiasm over a survey showing Germany, Europe's largest economy, was holding up despite the debt crisis.

ECONOMY

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* U.S. retail sales rose less than expected in January as consumers cut back on car purchases and did less online shopping.

MARKETS

* European stocks turned lower after initial gains based on economic optimism.

* Crude oil held steady.